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Rising aluminum costs cut into Ford's profit

When Ford reports fourth-quarter results on Wednesday afternoon, it is expected to fret that rising metals costs have cut into profits, even as rivals say they have the problem under control. Aluminum prices have risen 20 percent in the last year and nearly 11 percent since Dec. 11. Steel prices have risen just over 9 percent in the last year. Ford uses more aluminum in its vehicles than its rivals. Aluminum is lighter but far more expensive than steel, closing at $2,229 per tonne on Tuesday. U.S. steel futures closed at $677 per ton (0.91 metric tonnes). Republican U.S. President Donald Trump's administration is weighing whether to impose tariffs on imported steel and aluminum, which could push prices even higher. Ford gave a disappointing earnings estimate for 2017 and 2018 last week, saying the higher costs for steel, aluminum and other metals, as well as currency volatility, could cost the company $1.6 billion in 2018. Ford shares took a dive after the announcement. Ford Chief Financial Officer Bob Shanks told analysts at a conference in Detroit last week that while the company benefited from low commodity prices in 2016, rising steel prices were now the main cause of higher costs, followed by aluminum. Shanks said the automaker at times relies on foreign currencies as a "natural hedge" for some commodities but those are now going in the opposite direction, so they are not working. A Ford spokesman added that the automaker also uses a mix of contracts, hedges and indexed buying. Industry analysts point to the spike in aluminum versus steel prices as a plausible reason for Ford's problems, especially since it uses far more of the expensive metal than other major automakers. "When you look at Ford in the context of the other automakers, aluminum drives a lot of their volume and I think that is the cause" of their rising costs, said Jeff Schuster, senior vice president of forecasting at auto consultancy LMC Automotive. Other major automakers say rising commodity costs are not much of a problem. At last week's Detroit auto show, Fiat Chrysler Automobiles NV's Chief Executive Officer Sergio Marchionne reiterated its earnings guidance for 2018 and held forth on a number of topics, but did not mention metals prices. General Motors Co gave a well-received profit outlook last week and did not mention the subject. "We view changes in raw material costs as something that is manageable," a GM spokesman said in an email.

2016 Jaguar XE pounces on the Parisian port

It's been about five years since Jaguar discontinued the misguided X-Type and exited the compact luxury sedan market, but today marks the British automaker's re-entry into the segment with the public debut of the all-new XE.
Pitted against the likes of the BMW 3 Series and Mercedes-Benz C-Class, the new Jaguar XE is based on an all-new aluminum architecture that will underpin many new felines to follow, and packs a new family of four-cylinder engines. That is, aside from the range-topping XE S pictured above, with the super-six borrowed from the F-Type.
Conservatively styled but elegant and uniquely Jaguar, the XE isn't set to arrive Stateside until 2016. So unless you're planning a trip overseas (with a stop at a Jaguar showroom on the itinerary), our gallery of live shots from the floor of the Paris Motor Show here at the Porte de Versailles may be the best look you'll be getting at Coventry's latest for the next couple of years.

Hardcore Jaguar F-Type underway, 600 horsepower possible

Thanks to an already potent range of supercharged engines with some of the best exhaust notes available, the Jaguar F-Type is without a doubt a sublime performer. Still, there's always room to grow, and we are getting another good look from the Nurburgring at what's suspected to be an even more powerful version on the way. Spy shots of what was believed to be the Jaguar F-Type R-S first came out last spring. This time the roadster is practically uncamouflaged, though. The similarities are definitely there, and both test cars wear the same wheel design and quad-tailpipe rear diffuser. The latest one lacks the massive front splitter jutting out but gets a quite large, fixed trunk lid spoiler at the rear. You can also spot some large-diameter ceramic brake discs behind the wheels. The things happening under the bonnet might be even more interesting, though. To befit all of the exterior performance upgrades, Jaguar's supercharged 5.0-liter V8 is expected to nestle between the front wheels, and the mill is likely getting a boost in power to take output to 580 or even 600 horsepower, versus 550hp in standard form. Hopefully, the extra grunt makes the exhaust note even more intoxicating, as well. Featured Gallery Jaguar F-Type R-S Spy Shots Image Credit: CarPix Design/Style Spy Photos Jaguar Convertible Performance jaguar f-type r jaguar f-type r-s